How the U.S. economy out of the woods.

<P> Hong Kong "Ta Kung Pao," a comment on December 4 article, "How the U.S. economy out of the woods" that the United States to stabilize the financial institutions in the same time, the urgent need to strengthen the investment of financial institutions supervision of financial derivatives. .Face up to its virtual economy and real economy caused serious economic risks, after hanging upside down, reflect on its harm than good model of economic development, licking wounds, while in the clear treatment by doctors scraped the bone to create a healthy economic development to ensure that the financial system. .Meanwhile, the increase in real economic development investment, strengthen research and development, science and technology revolution, leading the world economy. .This is the key to the U.S. economy move out of the woods. .</ P> <P> article summarized as follows: </ P> <P> American scholar Albert Bell has sharply pointed out: "The more capitalist a short-term wealth creators, the more long-term social value will be the destroyer" .. .Recalling the past three decades evolutionary history of the U.S. economy, we find: in the U.S. dollar as the central payment system and the endless financial innovation and support the shield, the great prosperity of the U.S. financial industry to create an astounding wealth of reproduction rate at the same time, .also to economic development should be the most solid foundation of the real economy pushed to the side. .That Wall Street financial oligarchy and the U.S. government's economic officials believe that financial capital alone is sufficient to guide the global economy. .</ P> <P> Originally, the manufacturing sector in the real economy, represented by the proportion of the U.S. economy has been over the financial industry. .However, in economic and financial logic arrangement, the center of U.S. economic activity, production of material goods deviated from, but rather focus on the financial asset management, mobile and value-added up. .Result, the financial services industry represented by the development of much faster than the real economy. .Under the clarion call of financial liberalization, to Goldman Sachs, Morgan Stanley, Citigroup represented the strength of financial institutions continue to expand, an endless stream of financial derivatives. .At the same time, the United States continue to shift to offshore manufacturing, leading to the U.S. economy greatly increased the degree of virtualization. .Market value of derivative financial products the United States has up to 400 trillion, 28 times the U.S. GDP is the total value of the stock market and real estate 15 times. .Even if that asset quality is generally high, Citibank, in its total assets of 2 trillion U.S. dollars, the table is only 600 billion U.S. dollars of assets, the other over 15,000 billion U.S. dollars in balance sheet assets are CDO and other derivative financial products. .The structure of the assets of Lehman Brothers, the overwhelming majority of high-risk real estate mortgage-backed securities assets. .It now appears that subprime mortgage loans this seemingly ordinary financial derivatives have become the detonating fuse of the U.S. financial crisis, both because the U.S. real estate bubble burst in the mortgage lead is cut off the source of the deterioration of economic growth is expected ., but also because the mathematics of financial derivatives under the support of a Wall Street launched a dazzling financial derivatives, making the risk assessment can not keep up with product development, leading to even more powerful financial institutions, but also increasingly vulnerable. .Moreover, this caused by the loss of financial derivatives is very difficult to find, until finally exposed when, in order to stop the bleeding time is too late. .</ P> <P> visible, both economic and financial of the U.S. economy pushed the clouds, can also become a major force behind the U.S. economy went into hand. .If the virtual economy and real economy severely upside down, even a seemingly very common financial derivatives can also create a financial plague. .In this sense, the financial crisis in time, it should cause the United States on its path of economic development, a thorough reconsideration. .</ P> <P> is well known that the development path of the U.S. economy in the 1980s has been distorted. .Double deficit continues to expand, making the United States must continue to find additional sources of recurrent deficit to ensure that capital account surplus. .Then in the 1990s, the United States to use its hegemony concept of the new economy hype, through the capital market to attract a large number of foreign capital entered the United States. .</ P> <P> With the technology bubble burst and the "9? 11" incident, the U.S. capital markets attract investment function started to diminish. .Under such circumstances, the U.S. government monetary and fiscal policies both. .Federal Reserve Chairman Alan Greenspan when he was one continuous substantially lower interest rates, in 2001, the Federal Reserve cut interest rates 11 consecutive times, the federal funds rate fell to its lowest level in 40 years, with the media as saying that "opened the monetary tap." .The Fed released to the market through a lot of liquidity, and ultimately overcome the result of the stock market bubble burst in the market panic. .However, the U.S. real interest rates negative interest rates for several years, the dollar supply exceeds demand in the market, resulting in depreciation of the dollar. .On the other hand, the U.S. government tax cuts in the financial, tax cuts totaling 1.35 trillion U.S. dollars, and to encourage consumption and investment. .These measures to stabilize the market, the U.S. economy avoid a recession. .At the same time, the United States through the real estate market to maintain the upward trend in asset prices, excess liquidity through new lending instruments of the flow of the real estate market. .These measures in creating the surface prosperity of the U.S. economy after the U.S. housing bubble has led to the expansion, and ultimately led to the impact of the global subprime crisis. .</ P> <P> History is a mirror of the best. .Britain was the reason why the world's super powers from the "empire the sun never sets" back to the end of the British Isles occupies a starting point, in addition to the use of excessive force beyond that because the British rulers indulge in the financial industry and prosperity to the neglect of the surface .the real economy. .USA Today is no exception. .Stabilize the U.S. financial institutions at the same time, urgent need to strengthen the investment of financial institutions supervision of financial derivatives. .Face up to its virtual economy and real economy caused serious economic risks, after hanging upside down, reflect on its harm than good model of economic development, licking wounds, while in the clear treatment by doctors scraped the bone to create a healthy economic development to ensure that the financial system. .Meanwhile, the increase in real economic development investment, strengthen research and development, science and technology revolution, leading the world economy. .This is the key to the U.S. economy move out of the woods. .(Zhang Yu you) </ P>.